Medifast Reports Q2 Results – Slide Continues

Company revenues for the first six months of 2025 were $221 million, down 35.6% from the same period last year. At this rate, full-year revenues will come in around $380 million, based on the Q3 outlook. This would be a 37% decline from 2024 revenues of $602 million.

Management reported that 23% of their coaches have used GLP-1 drugs themselves. They also mentioned a new Premier Plus pricing plan that involves some discounts, for autoship clients. A new Edge program was also mentioned being launched in Q2, to help coaches to build their business. New coach acquisition was down in Q2, and the number of active coaches was down 32% from Q2 2024. The firm has $162 million on hand in cash and equivalents.

The slide in revenues and coaches continues at Medifast, as GLP-1 competition remains strong. Still ne mention of the possibility of entering overseas markets. No mention of how much Medifast will spend this year on marketing, and on what channels. DietBusiness Watch still sees no national TV ads for Medifast. Our opinion about this remains clear — the company should be spending more to build a national brand name, and not rely just on the marketing efforts of its coaches. It has $162 million in cash and should be spending some of that on marketing, to compete with the likes of NutriSystem and Weight Watchers, among others. Unfortunately, we don’t see any improvement in the near future. We think that most of the dieters today are looking at the cost of a weight loss program and are choosing to use a GLP-1 drug plan alone — not combining a drug plan with a meal replacement plan such as Medifast. That would double their cost – from $300-500 per month to $700-900 per month. In an economic environment of high grocery and other prices, coupled with the possibility of a recession, it’s just not sustainable or affordable.

Learn More About The Commercial Weight Loss Market – Report by Marketdata LLC

Marketdata LLC has just published a new report: “The U.S. Weight Loss Market: Commercial (non-medical) Programs & Products”, March 2025. This is a 220-page analysis of commercial weight loss programs/companies and how they have been affected by and respond to the onslaught of the GLP-1 drugs competition.

The $38 billion U.S. commercial weight loss market is 15% larger than in 2020, but has had to pivot to adjust to huge competition from the popular GLP-1 drugs. The large commercial chains have been hurt the most since 2022. The business has gone virtual, and some competitors have added the GLP-1 drugs to their programs to position themselves for a new future.

However, some commercial markets have held up well. Diet soft drinks have shown surprising strength, and high protein meal replacements have been positioned as an adjunct to the weight loss drugs. The weight loss apps market is growing strongly. The ranks of commercial weight loss centers have been thinned, and franchising is all but dead as a growth model.

Some Report Findings::

• Marketdata estimates that the U.S. commercial (non-medical) weight loss market, for programs, products and services, was worth $38.4 billion in 2024, down slightly from $38.8 billion in 2022. Commercial services represent 53% of the $72.2 billion total market now, down from 82% in 2020, prior to the GLP-1 boom.
• The commercial weight loss programs market segment contracted by 29.2% in 2023, to $3.24 billion, and another 23.7% to $2.47 billion in 2024, due to competition from GLP-1s drugs. This amounts to a 56% decline in just two years.
• Commercial weight loss companies have lost $2 billion in revenues since 2022 due to the competition from GLP-1 drugs. Jeny Craig went bankrupt, Profile Plan closed, and NutriSystem’s private equity parent Wellful is having debt issues.
• The “average” weight loss center had annual receipts of $646,250 in 2022. But, sales have fallen since then, to $484,000 per center in 2024.
• There may be an opportunity for commercial weight loss firms to post some growth in the second half of 2025. The GLP-1s shortage is over, and the compounding pharmacies have to stop making these meds as of May 22. Consumers will then have to pay full price for the brand name meds. Many will opt for less costly (non-medical) diet programs.
• The business has gone virtual. Operating a retail, brick & mortar weight loss center or franchise has become too difficult in this era, with rising real estate and staff costs. Many businesses have pivoted to a virtual delivery model, which can be scaled larger and quicker, and is more profitable.

Purchase This Report:

The report’s description and Table of Contents are found at this website, see home page, Off The Shelf Market Reports, red link for Diet Market – Our Specialty, or contact us at 813-971-8080 and we’ll email them to you. The report contains 62 tables and charts. Price: $995. A 25-page, $99 Overview Summary report is also available.

Included… dollar value & growth rates of all major commercial weight loss market segments (early 1980s to 2024 and 2025 & 2028 forecasts), latest market trends and company developments, status reports for: diet soft drinks, artificial sweeteners, commercial weight loss centers, multi-level marketing diet plans, retail and MLM meal replacements and weight loss supplements, and low-cal frozen entrees. Analysis of the medical weight loss programs market and competition from MDs, hospitals, medical clinic chains, and telehealth.

The report includes a 35-year revenue analysis of the market through past recessions and fad diet cycles, plus weight loss center franchising, and extensive national/state commercial centers’ operating ratios. Rankings & revenues of top commercial chains, brand sales, and a Reference Directory. Competitor profiles for: Weight Watchers, Jenny Craig, NutriSystem, Medifast, Herbalife, Noom, MyFitness Pal, Slim-Fast (Glanbia), Simply Good Foods (Atkins Nutritionals), Slimgenics, Profile by Sanford, BeachBody, Metabolic Research, Visalis Life Sciences, Isagenix, Shaklee, AMWAY (Quixtar), and Nu-Skin.